The shares of heavyweight HDFC Bank have seen a sharp downturn, falling more than 25% so far this year as governance worries kept its 42 lakh shareholders on the edge. While some investors may be eyeing the stock after the sharp correction, analysts cited several reasons why patience is warranted.
The sharp decline in HDFC Bank’s share price intensified in March after its former part-time Chairman Atanu Chakraborty resigned , stating that some practices within the bank were not matching with his personal values and ethics. “Certain happenings and practices within the bank that I have observed over the last two years are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above,” Chakraborty wrote in his resignation letter.
